Bristol-Myers Offers $4.5 Billion For Imclone

July 31, 2008 6:04 p.m. EST

Trenton, NJ (AHN) - Bristol-Myers Squibb Co. announced Thursday it had made a $4.5 billion all-cash offer to acquire biotechnology company ImClone Systems Inc. Bristol currently owns 17 percent of ImClone shares.

The two drug-makers currently partner on the development of several cancer drugs. Most notable is the developement of Erbitux, which treats advanced colorectal cancer and head and neck cancers.

"We have high regard for the potential of ImClone's pipeline assets, while recognizing the early stage of their development and the significant investment which is required to further their development," Bristol-Myers Chairman and CEO James M. Cornelius said in a letter to ImClone's board, according to the Associated Press.

The deal works out to a purchase price of roughly $60 a share, representing a large premium from ImClone's closing price of $46.44 on Wednesday. Accordingly, shares of ImClone surged on Thursday, finishing 37 percent higher at $64.02.

Worth noting, billionaire investor Carl Icahn is chairmen of ImClone's board. Icahn reportedly has snubbed previous offers for the company that were in the $50 a share range and is rumored to seek a deal worth at least $70 a share.